Major event to mark Bapco complex launch.
The low sulphur diesel production (LSDP) project comes at a cost of $725 million.
The LSDP facility has been a long-term plan for the company as part of its ongoing Strategic Investment Programme.
The LSDP project promises to reduce the current high-sulphur content of Bapco's diesel pool ensuring sales in the international diesel market, therefore keeping it competitive and profitable as a major international export refiner, the company said.
The project is one of the most complex undertaken by Bapco for many years.
The justification and the economics of the project reflect its importance as a vital project, enabling the continued operation and future prosperity of Bapco as a major international export refiner.
It is expected to increase the annual revenue of Bapco by $300m, a 30 per cent return on investment.
This is achieved due to the project's advantages of yielding the more valuable refinery products and increased efficiency which will produce 100,000 barrels per day (bpd) of ultra-low sulphur diesel by reducing the sulphur content from an average of 0.65pc to 0.001pc.
The LSDP project forms the main element of Bapco's $1.233 billion Strategic Investment Programme.
Bapco evaluated all the latest technology for the investment. It is made up of four main units: hydrocracker, hydrogen plant, sulphur plant and number two HDU revamp.
At the peak of its construction, the project had over 3,000 people working on it.
The logistics of Bapco's latest project was in itself an engineering feat. The centrepiece of the LSDP project is the 60,000 bpd hydrocracker, which is one of the largest in the world.
At the heart of this unit are two large reactors. The first reactor weighs over 1,000 tonnes and the second over 400 tonnes.
With plans to add a further 700 wells in the next 15 years, Bapco remains at the forefront of the oil business as one of the most ambitious companies on the globe.
Copyright [c] 2008 Gulf Daily News
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